The coalition committee has approved measures to boost housing construction in Germany, which Federal Minister Verena Hubertz regards as groundbreaking. The Minister for Housing, Urban Development and Building sees these resolutions as a decisive impetus for the sector.
A central element of the agreement is the establishment of a federal housing association. This association is intended to counteract the shortage of affordable housing in strained markets and simultaneously promote the industrial development of serial construction. Ms Hubertz's department, in cooperation with the Ministry of Finance, is already working on concrete proposals for the implementation of this project.
Unlocking Funding Capacities and Protecting Property
Another resolution concerns the unlocking of funding for housing construction. From 1 January 2027, national capital requirements for residential property loans that go beyond European regulations are to be abolished. This measure will enable banks to use previously retained funds for new housing loans. It is expected that this will significantly increase the financing of further housing developments without the need for state tax funds.
The coalition has also agreed on strengthening property protection. It is emphasised that a long-lasting expropriation debate in the past did not create new housing, but rather caused uncertainty among investors. The clarification now sought via federal law is intended to create investment security and focus on new construction as well as robust tenant protection in existing properties.
Programme for Upswing and Employment
The agreement of the coalition committee, summarised in the “Programme for Upswing and Employment”, confirms the course of the Federal Ministry. Concepts such as the “Building Turbo”, serial construction, and a new risk culture in administration are to be established as standards for the entire federal administration. The Minister underlines the necessity of swift implementation, as housing is ultimately created on construction sites and not in political committees.
